On Friday 16 March 2007 10:16, ma...@hu... wrote:
> > On Thu, 2007-03-15 at 16:05 -0500, arc...@mt... wrote:
> >> I have a supplier who gave me an early payment discount of 1%
> >> The discount is on the items, not the freight charges or GST.
> >>
> >> Any idea on how best to handle this with SL 2.6.23 ?
> >
> > My solution...your mileage may vary.
> >
> > I've created a G/L account (mine is under COGS) called Discounts Earned.
> > After you key the vendor invoice for the full amount, key an AP
> > Transaction selecting the Discounts Earned account using a negative
> > dollar amount. Yes, you'll have two items on your check run referring
> > to the same invoice number, but it works well for me.
>
> I had the reverse issue (tracking pre-pay disounts for customers) and
> solved it this way:
>
> (1) create COA income account (in 4000 range) for discounts
> (2) define a part CREDIT as service and give it that income account
> (3) use that part # on invoice line item, but with negative amount.
>
> A nice side effect is that when you run an income statement, the discounts
> show up in parentheses in the income statement, which (for my case) was a
> more accurate statement.
>
> You could just as easily have it show up as an expense. Just use a 5000
> serices account in step (1) above and mark the expense account as an
> inventory tracking item.
>
> m
>
Thanks for the input !
I've been doing it the same way that David suggests. Good to know I'm on the
right page.
Cheers !
Roy Pennington
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